Australian shares close lower as tech stocks weigh
The S&P/ASX 200 index closed 0.1% lower at 8,550.8 points. The benchmark ended flat on Wednesday.
Technology stocks slipped 2.1%, closing at its lowest in more than three weeks, led by a 5.3% decline in Xero . Shares of the accounting software maker resumed trading a day after it said it would acquire U.S.-Israeli payments provider Melio Payments for as much as $3 billion.
The company raised A$1.85 billion ($1.21 billion) at a 9.4% discounted price of A$176 per share to help fund the deal.
'While the deal will help bolster Xero's credentials as a global software player, questions remain about the price paid, the potential dilution of free cash flow margin and how the loss-making company will be integrated into Xero's business,' said Tony Sycamore, market analyst at IG.
Larger peer WiseTech Global fell 0.6%.
Australian shares flat as banks offset mining drag; inflation data eyed
The industrial sub-index fell 0.4% and real estate stocks lost 0.7%.
Heavyweight financial stocks ended flat after scaling fresh record highs for three consecutive sessions. Top lender Commonwealth Bank of Australia closed down 0.4%.
Sycamore said that the financial sector is overbought and there is potentially a little bit of cooling.
Miners ended up 0.1% as copper prices hit a two-week high, while healthcare stocks rose 0.4%.
Local investors are now awaiting May retail sales data due next week.
There are concerns around Australia's growth trajectory and the retail sales data may reinforce the case for a rate cut in July and a potential follow-up cut in August, Sycamore said.
New Zealand's benchmark S&P/NZX 50 index snapped a six-day losing run to finish 0.2% higher at 12,480.05 points.
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